Question: Show that the Cobb-Douglas production function P = bL K satisfies the equation L L + K ak (a + B)P

Show that the Cobb-Douglas production function P = bLαKβ satisfies the equation

L L + K ak (a + B)P

L L + K ak (a + B)P

Step by Step Solution

★★★★★

3.44 Rating (163 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Calculus 6th edition Questions!

Q:

TopSteamer has provided guarantee to its subsidiary, GermanStove, for a HK$10 million long-term bank loan from a German bank with interest payable annually at 31 March. The recent financial crisis...

Q:

A monopoly has a Cobb Douglas production function per hour Q (K, L) = K^1/3 L^1/3. The cost of capital (rent) is $27 per hour and the cost of labor (wage) is $8 per hour. Moreover, this firm has a...

Q:

The Cobb Douglas Costs Excel App provides a nice link between the Cobb Douglas (CD) production analysis of Chapter 6 (see also Cobb Douglas Production Excel App) and the cost analysis in this...

Q:

Consider a competitive firm with a Cobb-Douglas Production function: Y = f (K, L) = K ^1/2 L ^1/3 . Let P be the price of output, W the wage, and R the rental rate on capital. (a) Prove that this...

Q:

Show that the Cobb-Douglas production function P = bL a K b satisfies the equation ( + ) L - + K

Q:

BELOW ARE MY QUESTIONS... P7 (8c) It is discovered that ACG's are essential for use in technology for detecting terrorist activities. As a matter of national security, Accounet allows the US...

Q:

1. Consider the following Solow-Swan model of growth: Y(t)L(t)A(t)K(t)I(t)=[K(t)][A(t)L(t)]1=L(0)ent=1forallt=I(t)K(t)=S(t)=sY(t) where 0L(0)ns0>0>0 and I(t) is the investment, s is the exogenous...

Q:

Assume that "B"=2 We have a standard Cobb-Douglas production function Y=F(K,L)=20K0510.5, where K is capital, L is labor. a) Write this Cobb-Douglas production function in per-worker terms (y) (by...

Q:

B) Suppose that output , Y, is produced by combination of physical capital, K, and with skilled labor, H, according the CRS, Cobb-Douglas production function is: Y = K (AH)1- where A represents...

Q:

Q2 Read the Jupiter Electronics case study in Chapter 19 and provide responses to the following questions: There are three basic features that should be incorporated into a theoretical framework: a....

Q:

Identify and define the three approaches to job analysis. For two of the three approaches, describe a relevant job-analysis technique. 2. What are the main differences among the job-oriented,...

Q:

A firm has short run total costs SC = 2q 3 8q 2 + 68q + 10 so SMC = 6q 2 16q + 68, SAVC = 2q 2 8q + 68 and SAFC = 10/q. Calculate the shut-down price for this firm.

Q:

The price - earnings ratio is calculated by dividing: Multiple Choice Dividends per share by market value ( price ) per share. Market value ( price ) per share by dividends per share. Dividends per...

Q:

1.5 An experiment consists of rolling two dice simultaneously and independently of one another. Show that the two events, first roll is even and second roll is even are statistically independent.

Q:

A projectile is fires directly upward from the ground with an initial velocity of v0 feet per second. Its height in t seconds is given by s = v0t - 16t2 feet. What must its initial velocity be for...

Q:

An object thrown directly downward from the top of a cliff with an initial velocity of v0 feet per second falls s = v0t + 16t2 feet in t seconds. If it strikes the ocean below in 3 seconds with a...

Q:

An object moves along a horizontal coordinate line in such a way that its position at time t is specified by s = t3 - 3t2 - 24t - 6. Here s is measured in centimeters and t in seconds. When is the...

Q:

if an act is legal at the time of entering a contract, but is subsequently made illegal to contract is discharged. true or false

Q:

a. Wilson filed his individual tax return on the original due date, but failed to pay $18,720 in taxes that were due with the return. If Wilson pays the taxes exactly 7 months late, calculate the...

Q:

Chocolate Bars, Inc. (CBI), manufactures creamy deluxe chocolate candy bars. The firm has developed three distinct products: Almond Dream, Krispy Krackle, and Creamy Crunch. CBI is profitable, but...